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Planned HyProMag USA project would build a state of the art rare earth magnet recycling and manufacturing facility in Dallas-Fort Worth area that could help solve for critical mineral independence, supplying defense, data centers, EV, medical devices and other sectors.

In response to new U.S. tariffs, China has imposed export controls on rare earth magnets and other products, effectively restricting the supply of a raw material essential to the manufacture of HDDs for data centers, AI systems, consumer electronics, medical equipment, electric mobility, robotics and defense equipment. CoTec Holdings Corp., through its 50% owned HyProMag USA joint venture with HyProMag Limited, is developing a rare earth magnet recycling and manufacturing facility in the United States targeting first production in H1 2027. HyProMag USA could produce rare earth magnets in the U.S. through a closed-loop system to support the reshoring of U.S. industry.

CoTec Holdings Corp., based in Vancouver, B.C., Canada, is a publicly traded resource extraction company that identifies and invest in new technologies and applies them to undervalued mining assets to produce critical minerals, and is traded on the TSX-V and OTCQB under the symbols CTH and CTHCF respectively.

HyProMag Limited is owned by Maginito Limited (“Maginito”), a company owned 20.6% by CoTec and 79.4% by Mkango Resources Ltd. HyProMag Limited is commercializing the patented Hydrogen Processing of Magnet Scrap (HPMS) technology developed by the University of Birmingham (UK) Magnetic Materials Group. HPMS technology recovers rare earth magnets (neodymium iron boron, or “NdFeB”) from end-of-life scrap streams in the form of an NdFeB powder, which is remanufactured into magnets via a short-loop process which offers major cost and carbon competitive advantages over other chemical-based magnet recycling methods. In March 2025, HyProMag USA announced the results of an independent ISO-Compliant product carbon footprint study which confirmed an exceptionally low CO₂ footprint of 2.35 kg CO₂ eq. per kg of NdFeB cut sintered block product.

The HyProMag USA project is now in the Engineering, Procurement, Construction Management ("EPCM") phase. A recent independent feasibility study in November 2024, envisaged production of 1,041 metric tons of recycled rare earth magnets and associated NdFeB co-products annually, with an option to readily expand to 1,577 metric tons of magnets associated NdFeB co-products. The current project payback is less than four years at conservative market prices.

HyProMag USA project is targeting a tripling of production within five years of commissioning, which is approximately 3x what the independent feasibility study contemplated and would equate to 10% of U.S. domestic demand.

China has a virtual monopoly on extraction and refining of all rare earth magnets, controlling 61% of production and 92% of processing, according to the International Energy Agency. On April 4, China began restricting the export of rare earth magnets by requiring special export licenses, which it is not yet issuing.

Julian Treger, CoTec Holdings CEO, commented: “Restrictions on rare earth magnets highlights the world’s dependence on a single dominant source for a vital strategic resource, and demonstrates the need for new sources of production. HyProMag USA will have the capacity to provide the United States with a secure domestic source of permanent magnets and accelerate the rebuilding of U.S. rare earth magnet production. This can ensure the aerospace, AI, defense, EV and medical device sectors have a reliable supply of this critical material.”

During the current EPCM phase, HyProMag USA is optimizing construction and operational efficiency and identifying ways to reduce capital expenditure and operating costs. In parallel, product and operational testing is continuing at the University of Birmingham Magnetic Materials Group pilot plant, in conjunction with HyProMag commercial developments in UK and Germany.

The HyProMag USA EPCM phase will include final vendor quotes to improve the accuracy of the capital cost estimate. HyProMag USA is also working towards securing potential U.S. government funding, financial grants and incentives from U.S. states, and strategic partnerships with U.S. companies.

For further information on CoTec, please contact Braam Jonker, Chief Financial Officer, CoTec Holdings Corp., braam.jonker@cotec.ca.

About CoTec

CoTec is a publicly traded investment issuer listed on the Toronto Venture Stock Exchange ("TSX- V") and the OTCQB and trades under the symbol CTH and CTHCF respectively. CoTec Holdings Corp. is a forward-thinking resource extraction company committed to revolutionizing the global metals and minerals industry through innovative, environmentally sustainable technologies and strategic asset acquisitions. With a mission to drive the sector toward a low-carbon future, CoTec employs a dual approach: investing in disruptive mineral extraction technologies that enhance efficiency and sustainability while applying these technologies to undervalued mining assets to unlock their full potential. By focusing on recycling, waste mining, and scalable solutions, the Company accelerates the production of critical minerals, shortens development timelines, and reduces environmental impact. CoTec's strategic model delivers low capital requirements, rapid revenue generation, and high barriers to entry, positioning it as a leading mid-tier disruptor in the commodities sector.

Forward-Looking Information Cautionary Statement

Statements in this article regarding CoTec Holdings Corp. (“CoTec” or the “Company”) and its investments which are not historical facts are "forward-looking statements" which involve risks and uncertainties, including statements relating to the HyProMag USA Project, HyProMag, the Company’s investment in Maginito and any benefit that the Company could derive from these investments and projects, as well as management’s expectations with respect to other current and potential future investments and the benefits to the Company which may be implied from such statements. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements, due to known and unknown risks and uncertainties affecting the Company, including but not limited to resource and reserve risks; environmental risks and costs; labor costs and shortages; uncertain supply and price fluctuations in materials; increases in energy costs; labor disputes and work stoppages; leasing costs and the availability of equipment; heavy equipment demand and availability; contractor and subcontractor performance issues; worksite safety issues; project delays and cost overruns; extreme weather conditions; and social disruptions. For further details regarding risks and uncertainties facing the Company please refer to “Risk Factors” in the Company’s filing statement dated April 6, 2022 and the Company’s other continuous disclosure documents, copies of which may be found under the Company’s SEDAR+ profile at www.sedarplus.com. The Company assumes no responsibility to update forward-looking statements in this press release except as required by law. Readers should not place undue reliance on the forward-looking statements and information contained in this news release.